Paris (AFP) – The collapse of traffic, threatens to drain customers: the strike by Air France pilots will cost the European number two airline Air France-KLM, which evoked an impact of around Wednesday half a billion euros in its 2014 financial statements.
Not surprisingly, the conflict that has grounded half of French aircraft company during the second half of September generated a significant drop in traffic Air France-KLM for the month: -15.9% for passengers, -17.7% for cargo, already in trouble
In an unprecedented move since the birth of. Air France-KLM, the majority of Air France pilots were on strike from September 15 to 28 to oppose a proposed development of low cost subsidiary Transavia France.
Under the pressure of the French government and a hostile opinion in the movement, they had thrown in the towel without bending their claim on the leadership of a single contract for all pilots of the group intended to preserve the benefits of their status.
“The accounts have not yet been arrested (…) But we believe that the impact in the third quarter will be in the range of 320 to 350,000,000″ euros, said the CFO of . Air France-KLM, Pierre-François Riolacci
He explained that if the group had been able to save some money especially on kerosene, it sustained mostly incremental “passenger accommodation, compensation to passengers or ticket on flights from our competitors to resettle some of our passengers, notes that we have not achieved the best prices’, he detailed.
The prospect of repeat performance second quarter (tripling of operating profit to 238 million) away. In the third quarter of 2013, Air France-KLM was generated
operating profit of 634 million.
M. Riolacci has reported a “second much harder to assess impact, which will weigh on the fourth quarter or the beginning of 2015″, namely the potential leak of customers translates into rates for many lower than usual.
However, management recognizes not be able “to accurately assess the proportion of the delay due to the strike and that due to unfavorable changes in demand . “
” since the beginning of the summer and it has since been confirmed to be extremely careful in the consideration of these figures, “warned Mr. Riolacci
. – ‘Bring customers in airplanes’ –
During the first half of September, demand remained “fairly subdued” because of significant capacity in the market. In July, the group explained that overcapacity affecting revenues on some long haul routes to North America and Asia.
In the end, combined with low demand strike could impact “of order of € 500 million in gross revenues for the year 2014 ‘surplus estimates the group, which was previously a surplus of between 2.2 and 2.3 billion. This forecast is thus reduced from 1.7 to 1.8 billion.
When asked about the impact on revenues launched since the end of the strike promotional campaigns, the officer stressed that the priority was ” to bring customers in airplanes. ” This fall in prices was taken into account in the estimation of 500 million.
With such an impact, the objective of bringing the Air France accounts in the green this year will not be met, recognizes the company. In 2013, the group recorded an operating profit of 130 million with profits of KLM. The only entity Air France had accused an operating loss of 174 million.
The company and sign its sixth year of operating loss in a row. We must go back to 2008 to find an operating profit (62 million) for Air France.
The CFO also warned that “this impact will be found substantially equivalent to the level of net income” Air France-KLM. In 2013, its net loss was $ 1.83 billion.
By Industry in September, the long-haul traffic, the most lucrative, fell 15.5%, the short and medium-haul deficit of 17.5%. Traffic from the low cost subsidiary Transavia (France and Holland) jumped 8.9% and capacity by 10.3%.
The Paris Bourse sanctioned against these performances. At mid-session, the title yielded 3.26% to 6.46 euros in a market down 0.56%.
The main union of pilots, SNPL, at the initiative of the strike, declined to comment.
“We lost a lot of money, too much,” lamented his side Bruno Negro, CFE-CGC, who had taken position against movement. He is now concerned about “debt that can not be reduced” because of the conflict.
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